The Package Shippers Association and the Association for Postal Commerce (PostCom) said in filings on Friday that they object to USPS changes coming July 13th that add significant (and ambiguous) costs to items with “non-standard” characteristics.
In 2022, the USPS introduced for the first time “nonstandard fees.” Sellers shipping long, skinny packages greater than 22″ long pay a $4 surcharge, and those shipping long, skinny packages greater than 30″ long pay a $15 surcharge. (The nonstandard fees are applied in addition to regular postage costs.)
As we reported in February, the Postal Service is expanding nonstandard fees in July to apply to more packages. The USPS officially announced in May that the nonstandard fees will also apply to round or triangular tubes; a can, or a wooden or metal box; and packages with other characteristics it considers nonstandard as of next month.
But PostCom stated in its comments on Competitive Price Changes, PRC Docket No. CP2025-7, that the criteria for what constitutes a “nonstandard” package remain unclear and subjective. It said the Postal Service’s “vague criteria” makes it difficult not only for average shippers to reliably assess compliance, but for postal employees as well.
“The past experiences of PostCom’s members suggest that implementation is unlikely to be consistent across the Postal Service’s network, creating a distinct possibility that fees will not be assessed in a consistent and uniform manner. We are also concerned that there may be variation in the zealousness with which individual postal personnel may see the Non-Standard fees as a revenue enhancement opportunity.”
PostCom said small and independent businesses that rely on USPS for affordable shipping may be disproportionately affected by the changes to USPS nonstandard fees coming in July, which could hinder their competitiveness and viability.
In addition, the changes could also have unintended consequences, according to PostCom. “For instance, polybags are widely used for many segments including apparel, pharmaceuticals, small parts, and many other lightweight shipments. Although the new standards do not directly address this type of packaging, they are broad enough to potentially capture polybags that are currently shipped as standard packages. If shippers wishing to avoid NonStandard fees convert to a compliant box, the cubic volume taken up by existing shipments could increase substantially, resulting in higher USPS transportation, delivery, and facility costs.”
The Package Shippers Association (PSA)’s comments on July’s Competitive Price Changes, also filed on Friday, focused on the magnitude of the price increase resulting from nonstandard fees applied on top of the new percentage rate increases for Competitive services coming in July; the new nonstandard fees range from $2 to $4 depending on the service:
“For pieces subject to it, the $4.00 nonstandard fee for Priority Mail and USPS Ground Advantage shipments represent rate increases of 37 percent and 72 percent, respectively, for the average Priority Mail and average USPS Ground Advantage piece. The $2.00 and $3.00 nonstandard fees for Parcel Select pieces represent, respectively, 62 percent and 93 percent rate increases relative to Parcel Select (including PRS) average postage.”
In fact, PSA asserted in its filing that the increase in fees is so great it indicates the services may not be competitive at all – and it called them “punitive surcharges”:
“The magnitude of the fees proposed is evidence that, in certain market segments, the Postal Service believes that it has sufficient market power to impose punitive surcharges without losing volume.”
It explained:
“For example, the Postal Service’s decision to set the Parcel Select DSCF nonstandard fee at 93% of Parcel Select revenue per piece implies it is not concerned such a dramatic rate increase will result in reduced business. This suggests the Postal Service may not face adequate competition in this segment of the Parcel Select market and, if so, this segment should be reclassified as Market Dominant.”
Some assertions made by the Package Shippers Association may especially resonate with online sellers who often bemoan a lack of transparency into how fees are assessed by ecommerce platforms and shipping carriers, with no way to dispute them:
“Additionally, the proposed price adjustments are silent with respect to how the Postal Service can reliably and consistently demonstrate to shippers who are assessed these fees why a particular package was subject to a substantial fee. The lack of consistent and objective data and visibility on how these fees may be assessed raises significant concerns regarding the Postal Service’s ability to implement these fees in a non-discriminatory fashion.”
The PRC has far less control over USPS changes to rates for “Competitive” services versus “Market Dominant.” But the Package Shippers Association said that cannot be justified where, “as here, the nature of the proposed price increase strongly suggests that the product as a whole or a subordinate unit of the product is insulated from effective competition.”